How to get cheaper car insurance

Cars can seem like one expense after another - MOTs, car wash, fuelling up and the dreaded car insurance renewal. Whilst most of the money we spend on our cars is out of our control, there are ways you can get cheaper car insurance. From improving car security to limiting your mileage, if you want to know how to get cheaper car insurance check out our tips below.

1. Shop Around

The worst thing you can do is let your car insurance renew automatically! Insurers typically take the opportunity to hike up the prices whilst you’re not paying attention. Taking a few minutes to compare car insurance on a comparison site could potentially save you hundreds of pounds.

2. What Coverage Do You Need?

Consider what coverage you really need from your car insurance. There are three main types of car insurance in the UK: third party; third party, fire and theft; and comprehensive. Getting a lower coverage policy could save you some money.

Every driver must have at least third party insurance. This covers you if you cause damage to someone else’s car or injure another driver, but won’t cover you for damage to your own car or own person. This is the lowest level of protection, so it’s normally a bit cheaper than other policies. However, you have to weigh up the potential costs if you get into a collision which destroys your car.

Third party, fire and theft basically does what it says on the tin: it includes everything from a third party policy, and it covers you against fire and theft. Again, because this isn’t comprehensive cover, it could save you some money.

Comprehensive insurance gives you the highest level of insurance. It covers damage to yourself, your car and damage to other vehicles and people. This type of insurance is often more expensive, but could be worthwhile if you’re on the road a lot. Especially when you weigh it up against the cost of a new car or repairs.

3. Pay Annually

Another hack to get cheaper car insurance is to pay annually, rather than in monthly installments. When you pay car insurance monthly, you’ll have to pay added interest. This is normally between 15 and 35%. So if you get quoted £600 for car insurance, if you pay monthly with 35% APR, you would end up paying £795. Paying annually instead would save you £195 in this scenario.

BONUS TIP: If you can’t pay in one lump sum, keeping a good credit score can help lower the interest you pay on monthly payments.

4. Increase Your Excess

Your excess is the amount you pay out in the event of any damage to your or another driver’s car. If you have an excess of £300 and cause £1000 worth of damage, you’ll pay the first £300 and the insurance company will pay the remaining £700. If you have an excess of £300 and cause £250 worth of damage, you would have to pay everything yourself.

Car insurers like when you set a bigger excess, because it means there’s less for them to pay! Increasing your excess could mean a lower total cost for your car insurance. Just bear in mind that if you have a collision or damage your car, you’ll have to pay out that amount, so make sure you can afford it.

5. Install a Car Tracker

A Thatcham approved car tracker is a great way to get lower car insurance. Thatcham is an insurance industry body, committed to making cars safer and more secure. A Thatcham approved car tracker is one of the best ways to do this.

A Thatcham approved car tracker is tracked 24 hours a day by a remote security operator. That means it will alert to theft whether it 3AM or 3PM, so you can be secure in the knowledge thieves won’t get away. It will continue to track the stolen vehicle’s location as operators liaise with police to provide updates. 

The very best car tracker is a Cat 5. A Cat 5 car tracker has all the above features, but also comes with a driver identification device, like a card or a fob. This must be present in the car when the engine is started, or the system will automatically alert to a theft. This provides protection against keyless car theft, which is growing in popularity.

A Thatcham approved tracker provides the best chance of recovering a stolen vehicle, saving insurers the need to pay out for a new car. That’s why they often offer lower insurance to drivers with a car tracker installed. Just check with your insurance first to find out whether this will lower costs.

6. Make Your Car More Secure

There are more security products that you can add to your car to lower your insurance. One of the cheapest security features you can buy is a steering wheel lock. This essentially locks your steering wheel in place, making it harder for thieves to steal as they can’t drive off.

Another security device that can lower insurance is an immobiliser. An immobiliser can be remotely activated and cut off the engine if stolen. This again makes it harder for thieves to steal your car. Immobilisers are expensive, so you must consider whether it will save enough on your insurance to justify the cost. If you own a very expensive car, it may well be worth it.

You should also check with your insurer whether installing these security devices will lower your car insurance costs.

7. Pick a Safe Car

One of the major factors that will affect your car insurance is the type of car you have. It’s common knowledge that you’ll pay less for car insurance for a 1L Kia Picanto than you will for a 3L BMW X5. This is because the insurance industry different makes of car into insurance groups.

There are 50 insurance groups, with 1-10 being the cheapest to insure and 40-50 being the most expensive. These insurance groups are based on car price when new, performance, cost of replacement parts and any safety features they may have. A BMW X5 is therefore considered more risky for an insurance company to cover, because it would cost more to repair or replace. That’s why it’ll cost more to insure. 

If money is tight, you probably won’t buy an expensive, group 50 car. But it could be worth bearing insurance group in mind when you’re shopping for a new car.

8. Avoid Modifications

Much like insurers consider what type of car you’ve got, they’ll consider what modifications you’ve made to the car. Modifications can make your car faster (and potentially more dangerous) and more attractive to thieves. Insurers will therefore ask if any modifications have been made before giving you a quote. Make sure you’re honest or your insurance could be void.

If you’re trying to keep your car insurance low, you should avoid modifications. That can include anything from the alloys to major engine modifications.

9. Maintain a Good Driving Record

Insurers will look over your driving history when quoting for your insurance. They’ll consider factors like previous claims and points on your license. Having no points or previous collisions will reassure insurers that you’re a safe driver and are unlikely to need them to pay out. That means they’ll probably consider you low-risk and offer you a lower car insurance quote.

10. Use Your Car For Commuting Only

Only using your car to drive to work is another way you can get cheaper car insurance. That’s because the less you use your car, the less likely you are to have a collision. So if you have a partner or a family member who can do most the driving at weekend, list your car as for commuting only. Lowering your annual mileage should also lower your insurance cost.

11. Get a Black Box

Quotes for young drivers can be extortionate; sometimes even more expensive than the car itself! That’s because young, inexperienced drivers are considered more risky to insure. Getting a black box installed in your car can be a great way to bring costs down. 

A black box will record how you drive and report back to the insurers. That includes how far you drive, when you drive and how fast you go. If you’re found to be a safe driver, your insurance premiums will go down; but if you’re found to be an irresponsible driver, insurance premiums will go up.

12. Add Careful Drivers to the Policy

If you want to get lower car insurance, you should consider adding a careful driver to your policy as a second driver. If they’re an experienced driver with years of no claims, they could actually bring your car insurance down.

In the same vein, you should remove any reckless drivers from your policy. If your other half has a history of speeding tickets and a fair few collisions, then they could be driving your car insurance up. Do they really need to be on your policy? If not, get rid of them.

Just make sure when you’re adding second drivers to your car insurance that you’re listing the main driver honestly. Otherwise, your insurance could be null in the event of an incident. 

So now you know how to get cheaper car insurance. If you decide to install a car tracker to lower your insurance, get in touch with us at TrackerFit. We’ll deliver and install your car tracker for free, anywhere in the UK! And if you’re not sure what car tracker you need, give us a call on 0800 756 5100 and we’ll help you find the right tracker for you.